"Newbie" Question

Generally speaking, wholesalers have a better degree of success and a higher profitability by finding non-MLS properties. These are the deal that no one knows about. In that case your buyer (the complete stranger) cannot go to a real estate agent because the agent has no knowledge of the property since it is not officially listed.

Wholesaling through the MLS is not impossible, just improbable. There are several reasons.

First, realtors have priced the properties. They are paid by commission. The more they sell the property for, the greater their commission. That is why most properties are at or very close to market value. Not that you can't find a good deal in the MLS but the profit margin for a wholesaler will be much smaller.

Second, realtors are a possessive lot that viciously guard their real estate market against "non-licensed professionals." Many, even most (but not all) realtors are not going to take kindly to low-ball offers from individuals that are bring buyers to pay more for a property and cut them out of a greater commission.

Third, buyers can get access to MLS listings (including REO) though other agents and online sources. So finding a "great deal" that they can cross check with a little work on their behalf is going to create problems down the road. If you can locate non-MLS listings, now you have an unknown property.

So, if you want to farm the MLS, go ahead, but you may find outside deals more profitable.

Thanks for your reply - campbellsimon.

In case of any misunderstandings.

So - by saying occasionnally on the site that by "wholesaling" you are able to find deals that nobody else is able to - do they mean that you and realtors together are able to find deals that no "individual" is able to find .... if not then how do they mean it would be done?

Also - would a buyer be interested in talking to you a [complete stranger] instead of talking to realtors?

An investor will be using an agent as well as you to find deals. The more people they have looking for deals the more deals they can do.

A way to get deals from agent that no one else can find is through a pocket listing. A pocket listing is a property that someone wants to sell and the agent knows about it before it is listed on the MLS. They tell their best buyers about it to get an offer before it is listed. This is a great way to use an agent to find non mls properties, and get some great deals.